Even as employers scale back their overall hiring plans amid weakness in the global economy, their interest in bringing MBAs on board remains steady and is likely to remain so during the coming months, according to a survey by the Graduate Management Admission Council®
MCLEAN, Va., May 15 /PRNewswire-USNewswire/ -- Even as employers scale back their overall hiring plans amid weakness in the global economy, their interest in bringing MBAs on board remains steady and is likely to remain so during the coming months, according to a survey by the Graduate Management Admission Council® (GMAC®), sponsor of the GMAT® exam, along with partners, the MBA Career Services Council and the European Foundation for Management Development.
The proportion of respondents to the annual GMAC Corporate Recruiters Survey who are preparing to hire new MBAs is higher this year than it was in 2007. Seventy percent of recruiters in the survey are in the market for people with MBAs, compared with 64 percent last year. Additionally, the expected projected number of new hires per employer is slightly up, from an average of 12 new MBA hires to 13 new MBA hires.
"Through economic slow downs, as well as expansions, organizations see value in the skills that MBAs bring to the table," said David A. Wilson, president and CEO of the Graduate Management Admission Council. "Even as there is serious retrenchment going on at investment houses, more companies in the finance and accounting industry plan to hire MBAs than did last year. About 18% more health-care companies plan to hire MBAs than did last year."
Most employers expect salaries to rise at the rate of inflation or better despite a rough economic climate that is seeing many firms retrench. The projected starting annual salary for new MBA hires in 2008 averages $83,541, up from $80,452 last year. In the U.S., projected average starting annual salaries is $85,581, up from $81,483.
"The preliminary salary projections are encouraging and do speak to the value of the skill and experience MBAs bring, said Tom Kozicki, President of the MBA Career Services Council and Executive Director of MBA Career Services at the Paul Merage School of Business. Although MBA schools generally experienced a similar level of on-campus recruiting activity this year as compared to last, schools are noticing a decline in offers in areas including the financial sector as well as a reduction in the number of smaller firms recruiting late in the school year. International students may face the toughest challenge in this market due to the limitations on work authorization visas."
The stable employment outlook for business school graduates reflects widespread respect among employers for people with MBAs, recruiters told GMAC researchers. Employers especially value business school graduates for their management knowledge and communications skills--traits that are as prominent among MBAs in a weak economy as they are when times are flush. The technical and quantitative skills typically emphasized by MBA programs also are selling points for recruiters.
Recruiters can point to their experience with earlier MBA hires to back up their sense that the MBA is a valuable credential worth paying for. The vast majority--83 percent--said they were very or extremely satisfied with their employees who have MBAs. And, employers ensure they retain their new MBA hires by providing challenging and interesting assignments (79%).
The 2008 GMAC Corporate Recruiters Survey includes responses from 2,307 recruiters and others involved in the hiring process at 1,552 companies around the world. The survey was conducted during a four-week period that ran from mid-February through mid-March. GMAC received assistance with the survey from the MBA Career Services Council (MBA CSC) and the European Foundation for Management Development (EFMD).
The Graduate Management Admission Council (http://www.gmac.com), based in McLean, Va., is a nonprofit education organization of leading graduate business schools worldwide dedicated to creating access to and disseminating information about graduate management education. GMAC annually surveys thousands of corporate recruiters, MBA students and business school alumni to gauge their feelings about the job market and collect other data. The Council also owns the Graduate Management Admission Test® (GMAT), used by more than 4,000 graduate management programs at some 1,800 business schools around the world to assess applicants. The GMAT was created in 1954 and remains the first and only standardized test specifically designed for graduate business and management programs. More information about the GMAT is at mba.com.
The European Foundation for Management Development (EFMD) is an international membership organization, based in Brussels, Belgium. With more than 650 member organizations from academia, business, public service and consultancy in 75 countries, EFMD provides a unique forum for information, research, networking and debate on innovation and best practice in management development. EFMD is recognized globally as an accreditation body of quality in management education and has established accreditation services for business schools and business school programmes, corporate universities and technology-enhanced learning programmes.
The MBA Career Services Council (MBA CSC) is the international professional association representing individuals in the field of MBA career services and recruiting. The MBA CSC provides a forum for the exchange of ideas and information and addresses issues unique to the needs of MBA career services and recruiting professionals. They also provide professional development and networking opportunities for their members and develop and promote their Standards for Reporting MBA Employment Statistics.
SOURCE: Graduate Management Admission Council
CONTACT: Sam Silverstein of Graduate Management Admission Council,
Office: +1-703-245-4317, Mobile: +1-703-625-0467, ssilverstein@gmac.com
Web Site: http://www.gmac.com/